I am a longtime business writer and the founder and principal of Wells Narrative Group, a New York-based thought leadership communications and content consultancy for companies and their executive teams. This blog is a homecoming for me: Previously, I was an executive editor of Forbes, where I wrote about companies, business personalities, and brands for more than a decade. My work has appeared in The Wall Street Journal, USA Today, Psychology Today Advertising Age, a numerous other outlets and I have been featured as a commentator on business and marketing on ABC, NBC, CBS, CNBC and NPR’s “Marketplace.”

11/11/2010 @ 9:06PM6,008 views

Crocs: Comeback Brand in the Making?

The footwear company based in Niwot, Colo., is fighting its way back since being declared “dead” in press reports last year.

After enjoying great success as its shoes flew off shelves and investors snapped up its stock—the company raised more than $200 million in its 2006 stock offering—Crocs stumbled during the recession. Consumers and investors considered the clog—and the company’s stock—a fad that had faded.

Now, Crocs is trying to fashion a comeback. It’s rolling out new, higher-priced shoes that include flip-flops and high heels. Those styles are highlighted in ads. Its traditional clog? It has been turned into an advertising character—two of them, actually—who give foot massages.

Its new styles are what the company wants to emphasize as it navigates a turnaround. The company just reported solid third quarter revenue that was up 30% from the year-ago period to $216 million with strong gains across multiple retail channels. This year, in fact, may be its first profitable one since 2007.

This week I caught up with Ken Chaplin, vice president of global marketing for Crocs. He was eager to show off its new shoes and boots but he seemed careful to avoid the word “clog.” Instead, he referred to it as “that iconic shoe.” It is one that is a blessing and curse as Crocs tries to create a future as bright as the colors of that…signature product.

Q: What did you do to overhaul operations at Crocs?

Chaplin: To get our business turned around we looked at the problems we were facing in two or three areas. Our first priority was to get the financial health of the company back in shape and stabilized. We certainly had inventory challenges—that’s no secret. Selling that inventory, moving it out of our system and unburdening the warehouses was a priority. We were able to do that through a combination of our own stores, outlet stores and liquidation opportunities around the world. A shoe that we may be tired of here in the U.S.,—such as the Mary Jane—has never been seen in India. It creates an opportunity for a new market.

We were able to get out of debt. We were carrying a lot of debt until half way through 2009. We’re now at a point where we are debt-free. Simultaneously, moving our focus from being operations- and distribution-driven to being brand and product focused. As we look at 2011, we have an amazing product portfolio. We now have a great platform for marketing to tell the story.

Q: You’re still best known for your quirky clog with holes even though you’re also selling boots, high heels and flip-flops. How do you take a brand associated with clogs and stretch it to include many different types of footwear?

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